Written by Harry Turnbull
The final deadline for paying voluntary national insurance payments going back to 2006 is looming.
For those with an incomplete record stretching back that far, this is the last chance to ensure the maximum state pension on retirement.
HMRC had originally planned April 2024 to be the cut off point but the news created an avalanche of enquiries that sent systems into meltdown. Worried buyers jammed up phonelines after discovering they could not make the top up payments online as a reference number was required – and that could only be obtained from customer services.
On top of that some people later discovered the system was in such chaos that many payments weren’t allocated to the correct year and some appeared to fall into a black hole.
It should be emphasised that anyone will still be able to make top up contributions going back six years as usual.
Having a full record of payments is vital to receive the full state pension, currently £221 a week. There are a number of reasons why workers may have missed out including being contracted out by their employer and failing to pay voluntarily when working as a freelancer.
The simple way to find out whether you are on course or not is to check your record on the government website https://www.gov.uk/check-national-insurance-record
Although HMRC is working to improve the process it is still not fully automated online so reference numbers are still required for the various different classes of national insurance.
The department says that more than 10,000 payments worth £12.5m have been made through the new digital service to boost people’s State Pension since it launched in April.
People have until 5 April 2025 to maximise their State Pension by making voluntary National Insurance contributions to fill any gaps in their NI record between 6 April 2006 and 5 April 2018.
The service enables people to check if they have gaps in their National Insurance (NI) record, calculate if making a payment would increase their State Pension, and then make a payment if they wish to do so.
Further analysis of the use of the online service shows:
- the majority of customers (51%) topped up one year of their NI record
- the average online payment is £1,193
- the largest weekly State Pension increase is £107.44
After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous 6 tax years, in line with normal time limits.
Since its launch in April, 3.7m people have used the online checking tool on GOV.UK to view their State Pension forecast.
Emma Reynolds, Minister for Pensions, said: “We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement. That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.”
The state pension age is currently 66 but is due to rise to 67 in 2028.
According to the Office for Budget Responsibility (OBR), under current population projections and government policy, such as maintaining the triple lock, the bill will rise to 1.2% of national income or £32bn in today’s terms by 2050.
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